Toby Perkins MP, Labour’s Shadow Minister for Small Business, commenting on the findings of a YouGov survey which show more than a quarter of micro businesses expect to fold within the next two years, said:
“It is deeply worrying that such a high proportion of small business owners fear for their company’s future. We are looking to the private sector to deliver the growth and jobs we need, but by cutting spending and raising taxes too far and too fast, ministers choked off growth and hit business confidence before the recent Eurozone crisis.
“Small firms are fundamental to achieving the growth we need but this Government’s lack of action is putting the recovery at risk. We have seen an increase in business failures and firms struggling to get the finance they need to survive and expand. The Government’s Project Merlin deal has failed with business lending falling by almost £10 billion last year, and this poll shows that even the bankers think the National Loan Guarantee Scheme will not provide the answer. More than four months after the announcement of credit easing, we are still waiting for details. In contrast, in Government Labour set up the Enterprise Finance Guarantee scheme which was up and running and helping small businesses in three months.
“Labour’s five point plan for jobs and growth would help small businesses now, giving small firms taking on extra employees a one year National Insurance tax break and temporarily reversing the Government’s damaging VAT hike.”